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Dutch resident, moving to Spain with Dutch companies

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PinkPanther

New member
Feb 7, 2022
5
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35
NL
#1
Hi all,

A couple of years ago I bought a house in Spain. Right now I an thinking of moving there permanently.
Yes I am aware that Spain is not a tax-friendly country, but still looking into exploring the options. I don't mind paying taxes and not earning high figure salary, but looking into the options on keeping my salary low and distributing the profits.
I have several operating companies (BV) in the Netherlands, and need to keep those. I also have a self employment company (eenmanszaak) which I sometimes use for freelance jobs.

So far I have been looking into these options:
- Put myself on payroll on one of the dutch companies, pay salary in NL, keep health insurance in NL (as it is required) and pay taxes in NL due to DTT
- Register myself as autonomo, send invoices to the dutch company for whatever and keep profits in the dutch company
- Opening an entity somewhere else (not transparant like US LLC, e-residence or something since it would also count as autonomo)
- Opening NL foundation, put money in there as gift or something and lower the profits

Are there any other options, besides moving ofc.?

Thanks!
 
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#2
It's common for expats, digital nomads, and non-Spanish citizens to receive a salary from a foreign company while registering as autónomo in Spain. This is completely legal, and I know dozens of people doing it.

Things become more complicated if you're a Spanish citizen and set up a U.S. LLC to run, for example, a coffee shop in Madrid, or if your clients are exclusively based in Spain.

In such cases, you’ll be required to pay Spanish social security contributions, which can be quite high. However, keeping your salary low and drawing income through dividends can help reduce the burden.

Honestly I wouldn’t move there officially I’d legally live there under the time period and continue to live in the NL.

You are potentially opening yourself up to big problems so be aware.
 
#4
PinkPanther said:
Hi all,

A couple of years ago I bought a house in Spain. Right now I an thinking of moving there permanently.
Yes I am aware that Spain is not a tax-friendly country, but still looking into exploring the options. I don't mind paying taxes and not earning high figure salary, but looking into the options on keeping my salary low and distributing the profits.
I have several operating companies (BV) in the Netherlands, and need to keep those. I also have a self employment company (eenmanszaak) which I sometimes use for freelance jobs.

So far I have been looking into these options:
- Put myself on payroll on one of the dutch companies, pay salary in NL, keep health insurance in NL (as it is required) and pay taxes in NL due to DTT
- Register myself as autonomo, send invoices to the dutch company for whatever and keep profits in the dutch company
- Opening an entity somewhere else (not transparant like US LLC, e-residence or something since it would also count as autonomo)
- Opening NL foundation, put money in there as gift or something and lower the profits

Are there any other options, besides moving ofc.?

Thanks!
Click to expand...
Option 1: don't understand. If you get paid from Dutch company, residing in Spain, according treaty, Spain will tax you personally based on treaty (tiebreaker), isn't?

If you emigrate to Spain, there will be an exit-tax on your undistributed profits as if you sold your shares (I think you own more then 5%).

If you are doing the management of the BV's in Spain, Spain will tax your BV's.

If you open an entity somewhere else, Spain will tax it, because you are managing from Spain.

Don't see how a foundation will lower your taxes on your business activities in The Netherlands or Spain. How do you see it working?
 
#8
ilke said:
I suggest thinking thrice. Or quadrice (although this is generally an obsolete word). Just think as many times as it takes to decide against moving your tax residency to Spain.
Click to expand...
I am entrepreneur and moved to Spain 10 years ago, I never advice moving to Spain especially right now with the bad fiscal new law.
People decide based on emotions and good weather, night clubs, cheap food and this is so terrible and can't understand it.
 
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#10
Yes. Cyprus is better. With non-dom you don't need to be there for more then 60 days (if you fullfill the conditions and be very careful with your visits to Holland or stay >183 days and you get better treaty protection) Listen from 1:45:00

 
#11
Imo registering as autonomo is not the best choice, the Beckham law is there to avoid taxes legally for the first 7 years.

You need to open a Spanish company and hire yourself first paying yourself a small salary of 18.000-24.000/year that will be taxed according to the local tax rates on individuals and invoice your NL companies for around 35-40k per year.

Then you move to Spain and request the Beckham law.

The purpose of requesting the Beckham law is "freezing" CFC rules for 7 years, allowing you to get your money from all your companies in a holding and eventually pay yourself when needed. I suggested a Soparfi in Luxembourg because it is one of the best companies in the EU to hold shares and because dividens are tax free.

This is a complex setup, it is viable only if your revenue heavily surpasses the costs of maintainance.
 
#12
Under the Beckham law you will have to pay big Spanish social security contributions on your salary. They are capped, but if you don't make a lot of money, they can still take out a big amount of your salary (38% and capped at 4,909.50 per month).

Tax rates are important, but social security contributions sometimes more important, especially if you don't get advantage of it.
 
#13
Koedam said:
Under the Beckham law you will have to pay big Spanish social security contributions on your salary. They are capped, but if you don't make a lot of money, they can still take out a big amount of your salary (38% and capped at 4,909.50 per month).

Tax rates are important, but social security contributions sometimes more important, especially if you don't get advantage of it.
Click to expand...
Plus.

When you will be a big fish, exite Spain is totally a nightmare.
 
#14
PinkPanther said:
I also have a self employment company (eenmanszaak) which I sometimes use for freelance jobs.
Click to expand...
When you move from The Netherlands you have to close your eenmanszaak. You can't keep that one open.

BV wise, check the address requirements (you need to own or rent the address) because when your bv's are registered at your residency address you need to find a solution for that.

In general; don't move to Spain. Seriously not even consider it.
 
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#18
aniglo22 said:
Yeah, but many of these 'expats' really abused it (e.g. guys performing work from Spain through an offshore entity and declaring it as foreign income )
Click to expand...
And because of that abuse the Beckham law is effectively unusable unless you have a watertight case and enough disposable cash to challenge hacienda. Trust me when I say; you dont want to go there.
 
#19
Nah, being autonomo is pure hell.
Most people on this forum are already well aware of it.

Filing the Modelo 720 still gives me chills every year, and now also have to report crypto in Modelo 721.
Hacienda has recently started collecting information on ALL card payments, regardless of the amount, monthly. Just to get an idea of the toxic mood.

The kicker? Hacienda monkeys get financial incentives for opening cases, even if they don’t win (!).
I was personally fined recently because my stupid gestor made a gross mistake last year.

I could go on. It’s complete insanity.
If you just want to enjoy the sun you can stay here 5 months and fly wherever in a few hours. This place is just for retirees.
 
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#20
GPT said:
And because of that abuse the Beckham law is effectively unusable unless you have a watertight case and enough disposable cash to challenge hacienda. Trust me when I say; you dont want to go there.
Click to expand...
Then why take advantage of it if you know your setup is shaky or it doesn't apply for you ? It's your own fault.
They simply managed to get by with their 'shaky' setups in their home jurisdictions and never had to face a strict tax authority.
 
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